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How do you enter stops and keep them from getting purposefully taken by Market Makers?
Through interchanges on the old SCAN forum during the past few months I have been persuaded (mostly by MarkD and BobV) that it is a good idea to enter Stop loss orders. So, I am just about ready to start doing that again.
The problem is that the last time I did that it appeared that market makers went down and grabbed my stop. How do you go about entering a stop and keep it from getting purposefully taken by Market Makers?
Do you leave your broker software loaded at all times?
A few years ago I was getting caught by trading thinly traded issues. Now insisting on 1 Million ave volume has gotten past that problem. I think the rest can be taken care of by trading on some not-so-common indicators and especially by watching increase in volume and well formed candle bodies.
Thanks again. I have not figured out how to designate a comment as an answer. How do I do that?
Stops are also beneficial to those who don't want to pay close attention to the trade. But every benefit comes at a cost.
It helps me to think about *why* I'd place any kind of stop order, before I think about where (and when) to place it, and I try to comprehend what different forces might drive a bid to the stop level, and what it takes (costs) those forces to get there, and why they'd bother.
I yearn to gain a better understanding of order flow between the closing and opening bells. Until then I don't use stop orders overnight. I'm not certain, but confident from experience that extended hour traders are aware of the pending orders and whether they are trailing or limited. Also I expect that those "traders" are more likely computers rather than humans making considered decisions.
The only one thing I'm certain of in the capital markets is that not one single bit of it/them have any sympathy whatsoever for my personal situation; and that those who do have the resources to actually manipulate price movement have much more capacity to collaborate and deceive, for the purpose of protecting their much more vast interests.
Short form: on a short term trade without other controlled risk management, an initial stop is placed with the order and monitored/updated throughout the trade. For longer term positions I set alerts.
As always, it continues to be a process